The Liberal leader told the crowd that Prime Minister Julia Gillard did not have a mandate for the carbon tax, which the government wants to introduce on July 1, 2012.

"If the argument is as strong as she says, trust the people to know the truth - go back and have a vote and we will accept the outcome," he said.

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Protesters at the No Carbon Tax rally outside Parliament House in Canberra today.Credit:Andrew Meares

Mr Abbott said the tax - which the Prime Minister promised during the election would not go ahead - would cost the average household an extra $2000 a year.

"Any government which puts a $2000 a year tax on the average household and then says please be grateful, here's $300 or $400, or $1000, back in your pocket - that is not tax reform that is a tax mirage," he said.

He said he was delighted to hear Ms Gillard tell Parliament this week she had learnt a lot from scripture lessons at a Baptist school.

"Thou shall not bear false witness," he said.

Protesters at the No Carbon Tax rally outside Parliament House in Canberra today.Credit:Andrew Meares

Mr Abbott said Labor MPs were wrong to vilify the protesters as "extreme".

"I do not see scientific heretics, I do not see environmental vandals, I see people who want honest government," he said.

Mr Abbott said it was important that the government made an "intelligent response" to climate change "not a stupid one".

Anti-tax rally organiser Chris Johnson, from the Consumers and Taxpayers Association, said before the rally that a new election should be called to test the government's mandate for a carbon tax.

"The Australian public have not had a chance to vote or have a say on the issue," Mr Johnson said.

Among the anti-tax protesters are the Young Liberals, DLP, Climate Skeptics, the National Civic Council and the Conservative Action Network.

Unions deliver petition

The ACTU stole the march on the anti-tax protesters today, delivering a petition early in the morning to Climate Change Minister Greg Combet supporting action to reduce emissions.

Ms Gillard has met members of the Australian Youth Climate Coalition which is pushing for a price on emissions. The coalition plans to meet Mr Abbott and the Australian Greens later today.

The Prime Minister said the ACTU petition had been signed by about 10,000 "working Australians" urging the government to take action on climate change.

She declined to say whether she would address the rally, but backed the right of others to protest.

"In a great democracy, people can make their voice heard by attending peaceful protests," she told reporters while visiting a wind farm near Bungendore, outside Canberra.

Greens leader Bob Brown said he would like to speak at the rally.

"I'd love to take out a little bit of enlightenment in the need for action on climate change," he told reporters in Canberra.

Greens deputy leader Senator Christine Milne said the Canberra rally resembled the Tea Party demonstrations in the US.

The Tea Party is a group typically considered conservative and opposed to tax increases.

"It is not what they [the Consumers and Taxpayers Association] call themselves but their behaviour is entirely consistent with the Tea Party in the US," Senator Milne told reporters.

"We know the global anti-warming movement is precisely the same sort of tactics, the same sort of behaviour and the same institutions supporting it as we saw in the campaign against smoking, the campaign against pollution."